Work out restaurant break even covers instantly with clear inputs, formula shown and shareable results.
Break-even covers is monthly fixed cost divided by contribution per cover, where contribution is average spend less the variable food, beverage and hourly labour percentage. Expressing it per trading day turns an abstract target into a number the floor team can act on.
Contribution per cover
Contribution = Average spend x (1 - Variable cost %)
Break-even covers
Covers = Monthly fixed costs / Contribution per cover
Rent, rates, salaried management, insurance, base utilities and depreciation. Hourly kitchen and service labour is largely variable.
Because contribution per cover is a small number relative to fixed costs, so a modest fall in spend per cover moves the required covers sharply.